Setting ordinary hours for an employee who works 12 hr shifts.

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greid

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13 September 2023
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I have one employee who will work 4 x 12hr shifts a week totalling 48hrs a week. This is within the security industry where 12hr shifts are allowed if agreed upon and more than reasonable breaks are provided (shifts are from 5pm to 5am).

My question is, is everything over the 38hrs a week considered overtime? What if the employee agrees to work those hours?

Have tried reading the award and am unsure. Wanted to see if it was a simple answer before I go and engage someone for professional advice.

EDIT: Award states "An employer must pay a full-time employee at the overtime rate for any time worked in excess of their ordinary hours." - do I define their ordinary hours inside the employment contract?

Thanks!
 

Tim W

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Perhaps you look it up in the award....
(I'm assuming that your employee is a genuine PAYG employee - this industry is rife with sham contracting...)
 

Rod

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is everything over the 38hrs a week considered overtime? What if the employee agrees to work those hours?
Likely yes, and doesn't matter. The employee, and you, cannot contract out of the award unless on more generous terms to the employee, not you.
 

greid

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13 September 2023
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Likely yes, and doesn't matter. The employee, and you, cannot contract out of the award unless on more generous terms to the employee, not you.
Thanks for the clarification! Not trying to do the dodgy just have only worked with salary employees before and not awards. I have read about paying employees more than award to offset overtime etc but cannot find it mentioned in the award! Who would be the best person to refer to for advice, an employment lwyer?

Thanks again for the help :)
 

Rod

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If paying higher wages than an award AND that is in lieu of overtime, then the employment contract must state that. Note paying $1 more than the award for all overtime to cater for overtime, leaves you exposed. The higher pay MUST cover the hours of overtime worked.

This does not remove your obligation to keep time records.

I do employment law :)
 

CirLott

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29 August 2023
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If paying higher wages than an award AND that is in lieu of overtime, then the employment contract must state that. Note paying $1 more than the award for all overtime to cater for overtime, leaves you exposed. The higher pay MUST cover the hours of overtime worked.

This does not remove your obligation to keep time records.

I do employment law :)
Why does this make an employer exposed? Could you please explain this in more detail?
 

Rod

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Failure to meet minimum award amounts is a breach of the Fair Work Act. As an example, paying $1/hr higher than award wages to cover overtime, is unlikely going to cover overtime obligations.
 

CirLott

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Failure to meet minimum award amounts is a breach of the Fair Work Act. As an example, paying $1/hr higher than award wages to cover overtime, is unlikely going to cover overtime obligations.
Oh, that's right, of course. I was referring to fulfilling the minimum award amounts + paying $1 more.